Wednesday, May 30, 2012

Israel and World War III, Iran Attempt 3

As things burn in Europe, Iran is slowly moving to the front burner, again (Really, give it up already)-
The latest Iranian Assassin Plot originating out of the US Embassy in Azerbaijan (Washington’s new best friend in the region), is an alleged Iranian assassination ring supposedly targeting US Embassy officials in various countries. Giving the US an excuse to lock-down its foreign offices is one thing, but this latest spy-thriller plot also serves another purpose – to mobilize full cooperation from key regional countries (much to the distaste of nearby Russia), and none is more crucial than Azerbaijan – Iran’s neighbor to the north.
Note the centrality of Azerbaijan in the war plans? We first noted this in June of 2010 and followed up in September of 2010 -
If Russia is not on board, the area near Azerbaijan will be critical for the U.S. to control if Russia attempts to resupply Iran in a war. Russia rolled mobile nukes into the theater in response to the Georgia's war with Russia (U.S. Spec Op)/Russian War of 888.
The article continues...
A series of dominos need to fall in order for the green light on Iran to flash freely for Washington, London, and Tel Aviv. The first and most crucial domino is Syria. In the Middle East region, Syria remains as one of the last remaining strong, secular states and maintains solid links not only with Iran, but also Russia. More importantly though, are its links to a highly organized and battle-ready militia and political force – Hezbollah, located in neighboring Lebanon. Once Syria is destabilized and the Assad government is out of the way, Syria can then be further divided into waring factions. When this happens, gone is Hezbollah’s number one supporter in the region.
From the 2012 predictions -
  • Syria  - It appears that the road to Iran lies through Syria. The US will try to draw in Hezbollah through "regime change". (Q1)
  • Iran - Time will tell on this one. Iran is a tough nut to crack as opinion is running contrary to Western interests here. IF the US gets Syria, Iran is next. There has been a lot of posturing in 2011, but no one has been able to capitalize. Look for the moral justification route being presented via Iranian "guerrilla forces" "destabilizing Syria and attacking US or NATO "peacekeepers".
And back to the assassins -
According to initial reports in the Washington Post, the newly uncovered ‘Iranian Assassin Plot’ consists of multiple high-value US targets overseas:
In November, the tide of daily cable traffic to the U.S. Embassy in Azerbaijan brought a chilling message for Ambassador Matthew Bryza, then the top U.S. diplomat to the small Central Asian country. A plot to kill Americans had been uncovered, the message read, and embassy officials were on the target list.
The details, scant at first, became clearer as intelligence agencies from both countries stepped up their probe. The plot had two strands, U.S. officials learned, one involving snipers with silencer-equipped rifles and the other a car bomb, apparently intended to kill embassy employees or members of their families.
Quietly mentioned after all the hype, however, is the admission that this latest Grisham plot could not actually be verified:
“Precisely who ordered the hits, and why, was never conclusively determined…”
The Real Effect
This goes to show just how tenacious these guys are. They think of things not in terms of immediate action and resolution, but in a dialectic way of destabilization over the course of decades to centuries. Today's 'casualty of war' in reality becomes tomorrow's aggrieved party terrorist that must be eliminated. Think of the players as corporations such as Wal-Mart, but imagine instead of going through a customer complaint process, Wal-Mart gets to use drone strikes on their house!!

Look for Syria to continue to be front and center as 'massacres' continue to surface. The issue with this thought process though, is that most of the time it is the western aligned forces doing the killing.

Tuesday, May 29, 2012

EU Looks to the Future - Real Effect ON TARGET

It appears that our ceti eel investment has paid off in spades, behold the EU appeal to the future!!! -
Herman Van Rompuy

Change is the only way forward. If we want to shape our future we must embrace change. This is true for all European countries #cyprus
The Real Effect
Longtime readers of TRE will remember the following from the 2011 predictions-
But the call out of Belgium isn't about revoking the Euro, rather about the preservation of the European Union and the need to 'pull together'. I would expect that we could begin to see propaganda calling for a United Europe in the face of "x" (economic crisis, terror, war).
And from the 2012 predictions -
The mantra "The future is our hope" begins to become center to the recovery.  What is lost on everyone is that in order for this concept to work, you have to sacrifice now. You can't borrow from tomorrow at an inflated rate (interest) and expect tomorrow to be better when the underlying fundamentals have NOT changed.
Overall, this is a common technique used to demonize those who criticize a given platform. Rather than allow the merits of the idea to sell itself, the adherent makes an emotional plea to 'Think of the ....(Fill in the blank)"

To teachers and many wives, the blank becomes children.
To doctors, it becomes your health.
To theorists, it becomes the future.

This is the desperation tactic of an argument that is failing usually quite miserably and cannot possibly survive the onslaught of an actual discussion of facts. Typically I have found that this is used in response to a 'scarcity' argument. For instance, let's examine a common argument for property tax increases -

Pro - We want to raise property taxes by 30% to fund education. (To an obscene level basically)
Anti - The free market cannot sustain that level of taxation, this will mean less jobs and unemployment. (A static fact)
Pro - Well, our (bogus) numbers indicate that (myopically) we NEED more money.
Anti - It doesn't matter what your numbers say to do, this will destroy wealth and people.
Pro - Well, you just don't care about the children or their future.

Now this is an extremely simplified version of this argument but this is being carried out everywhere as we speak. Republicans ignoring the national debt via wartime spending, Democrats and their pet projects, Keynesian spending, you name it, it ignores the larger issue of real sustainability.

Thursday, May 24, 2012

The Enterprise Is Sitting In Bahrain

ZH provides us with the latest carrier map -
There was a time, late in the winter, that not a day passed without some headline announcing Israel's preparedness to attack Iran, culminating with the grotesque - a show on Israel TV detailing the actual invasion plans. All these daily updates did was guarantee one thing - that absolutely no war could possibly break out for two simple reasons:
i) you never declare war when the opponent is expecting you, instead you habituate them to news about imminent invasions which never happens, and,
ii) Brent was over $120, which would guarantee no re-election for Obama as outright war would send the energy complex soaring, gas prices surging, and the world economy, but most importantly the Russell 2000, tumbling.
Over the past 2 months two things have happened: chatter of "imminent" war with Iran has died down to barely a whisper, and WTI is now trading 20% lower than 2012 highs. Which means there is far more capacity for a run higher. So putting all that together, does it mean that the prospect of war with Iran is now gone? Below we present the latest naval update map courtesy of Stratfor, and leave readers to make their own conclusions...
The Real Effect
Iran has fallen off the radar for the last few months mostly because the chatter has died down significantly. If I remember correctly, this is what happened right before the Iraq invasion. A lot of discussion, a lot of posturing some 'attempts' at peace and then suddenly "Shock and Awe". Even considering that, no one knows what's going to happen right up until the president gives the green light.

Now quite a bit of ink has been bandied back and forth about the possibility of Iran targeting the Enterprise in a grand false flag style operation. My assumption has been that if such a thing were to happen that the Enterprise would be fitted with some sort of explosives so as not to leave anything to chance. Given their current proximity to CIA stomping grounds, is it possible that the carrier is now being readied for a grand show?

Only time will tell there.

Wednesday, May 23, 2012

Romney Swings At Teachers

Showing his populist strategy, flip mittens does what he does best...sucker Republicans -
Mitt Romney said Wednesday he will expand Washington’s voucher program as part of a broad push for more school choice nationwide, setting up a dramatic contrast with President Obama, who has called for the D.C. program to be phased out, and with teachers unions, which have fought against expanded choice.

Mr. Romney announced the push on education in a speech in Washington as he made overtures to Hispanic voters, who regularly tell pollsters that access to education is one of their top concerns — even above immigration — and who generally support vouchers.

“Here we are in the most prosperous nation, but millions of kids are getting a Third World education. And America’s minority children suffer the most,” Mr. Romney said in a speech to the Latino Coalition, a conservative Hispanic organization. “This is the civil rights issue of our era. And it’s the great challenge of our time.”

And he declared war on teachers unions, saying they “are the clearest example of a group that has lost its way.” He said Mr. Obama is too beholden to the unions to be able to reform the school system.
The Real Effect
Oh, someone has been watching the political scene here in Wisconsin and is putting his finger to the wind eh? I am reminded of the great Homer Stokes -
Is you is, or is you ain't, my constituency? 
 But hey, don't take my word for it, let's go to the boss and get his word from the 2008 Goldman Sachs gifts -
Among Federal Candidates, 2008 Cycle

Name Office Total Contributions

Obama, Barack (D-IL) Senate $996,595
Clinton, Hillary (D-NY) Senate $411,150
Romney, Mitt (R) Pres $234,275
McCain, John (R-AZ) Senate $230,095
Himes, Jim (D-CT) House $155,098
Dodd, Chris (D-CT) Senate $112,500
Giuliani, Rudolph W (R) Pres $111,750
Edwards, John (D) Pres $66,450
Specter, Arlen (R-PA) Senate $47,600
Emanuel, Rahm (D-IL) House $37,750
 And who's been "important" since this list came out? Why, virtually all of them of course.

Watch for Romney to continually pander to his base and try to mimic Ron Paul until after the election. Once the election is over, if he wins, watch the president elect perform the usual presidential "moderation" as he shifts into governance mode and like Obama before him, throws out all of his campaign promises. After all, they weren't really necessary in the first place and we just can't "afford them".

Monday, May 21, 2012

Kissinger Admits that IMF Riots are Being Managed

As if there was little doubt -
In a recent statement Henry Kissinger admitted that social upheaval and mass civil unrest are to be used as a means of merging the US into an “international system”.

“The United States has to be part of an international system that we create domestically”, he told The Harvard Crimson in the beginning of this month. When asked what the most important problems are facing American society today, Kissinger answered:

“Internationally, the problem is that there are upheavals going on in every part of the world, but these upheavals don’t follow the same basic causes, and so the United States has to be part of an international system that we create domestically.” 
The Real Effect
In January of 2011 (the start of the 'Arab spring'), I reiterated my May 2010 observation with the following -
There is a fundamental change in the way the middle-class and below of the world view the world. An "enlightenment" if you will. Here is the crux of the problem though. The globalists understood that the sheep would wake up, in fact they anticipated and planned for it by naming it the IMF riot. The relevant question is, who can outflank who here? Will the people get to the globalists before they are able to pull the trigger on the full police state?
On that particular day, I was noting the deliberate and systematic push from those who adhere to a globalistic style ideology to stir up riots around the world to create a vehicle to implement their "Hope and Change" vision. (Note - that line of thinking goes beyond Obama) This deliberate stoking was an anticipated and desired outcome to foment global revolution to install a new world governance and ultimately a heralded Phoenix world leader. I also noted at the time that the revoloution started in spiritual Egypt of all places and spread throughout that hemisphere.

So here we have Henry Kissinger, one of the most informed and connected individuals in US politics stating, out loud, that indeed, they are planning on using all of this to create a New World Order. Do I really need to rest my case?

Friday, May 18, 2012

The Brown Shirts Are Marching

The 'disappearing' starts in earnest -
Police in the Windy City recently underscored the fact that the United States is now a police state little different than the former Soviet Union or East Germany.

In the video here, National Lawyers Guild (NLG) spokesman Kris Hermes says Chicago cops broke down an apartment door and arrested activists without a warrant.

Note: If the above video fails to work, see it here.

Such “preemptive raids” are a “hallmark of National Special Security Events,” said Sarah Gelsomino with the NLG and the People’s Law Office in a press release. “The Chicago police and other law enforcement agencies should be aware that this behavior will not be tolerated and will result in real consequences for the city.”

From the NLG press release:
The National Lawyers Guild (NLG) condemns a preemptive police raid that took place at approximately 11:30pm Wednesday in the Bridgeport neighborhood, and instances of harassment on the street, in which Chicago police are unlawfully detaining, searching, and questioning NATO protesters. The Bridgeport raid was apparently conducted by the Organized Crime Division of the Chicago Police Department and resulted in as many as 8 arrests.
According to witnesses in Bridgeport, police broke down a door to access a 6-unit apartment building near 32nd & Morgan Streets without a search warrant. Police entered an apartment with guns drawn and tackled one of the tenants to the floor in his kitchen. Two tenants were handcuffed for more than 2 hours in their living room while police searched their apartment and a neighboring unit, repeatedly calling one of the tenants a “Commie faggot.” A search warrant produced 4 hours after police broke into the apartment was missing a judge’s signature, according to witnesses. Among items seized by police in the Bridgeport raid were beer-making supplies and at least one cell phone.

The NLG reports police harassment and illegal searches of other anti-NATO activists in Chicago.

“The NLG has received reports that at least 20 people have been arrested so far this week, and two people are still in custody, not including the Bridgeport residents who are still unaccounted for,” the press release states.

In other words, the cops are disappearing enemies of the state the same way Stalin and Hitler did. Camps for political prisoners – a modern version of Stalin’s gulags – stand ready now in America for “re-education” of political heretics.
The Real Effect
Whether you agree or disagree with the raid itself, you cannot agree with the methodology used to carry out the raid. Preemptive raids? Guns drawn? NO WARRANT!?! This LITERALLY means that they had no evidence and are actively persecuting  these individuals. Perhaps we need to review, again -
"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."

U.S. Constitution - Amendment IV
(If you're a Republican and think that 'your side' upholds the Constitution, click on the following link and read the first comment.) Further, if you believe that this should stand, you literally do not believe in liberty, Constitutionality, America or it's founding, in which case - Why are you here at all?

Thursday, May 17, 2012

Obama Born In Kenya

I've got two words for this.

Duh and duh.

But the agent, through I'm sure NO political pressure on behalf of anyone, insists that 'No sir, just because you see smoke, certainly does not mean that there is fire. As a matter of fact, I borrowed Christopher Lloyd's Delorean and traveled back to 1991 to make the same mistake that everyone else is making. lol... What, these concrete shoes? No, I've always worn these.'

In completely unrelated news
Congress is borrowing a page from Florida's playbook and issuing its new mathematical standard: 2 + 2 = 5.

Cue the Right Leaning Stormtroopers

...because if we save just one of the poor, poor will have been worth it -
Despite the fact that the TSA attracts more bad publicity than any other federal agency in existence for its routine harassment of the traveling public and its penchant for hiring criminals, Congressman Mike Rogers has called for the TSA to get even “tougher” in the name of preventing the next terrorist attack.

“TSA likes to talk about their successes and I’m proud of their successes — we haven’t had another successful attack in 10 years. The problem is, we have only have to miss one and it’s a disaster,” Rogers (R-Ala.) said on CNN’s “Starting Point.” “We want TSA to become smarter, leaner and tougher.”
 The Real Effect
There is this mistaken notion among most of the populace that techocratic 'experts' are in charge and are successfully managing society on a broad scale.You see, these experts went to the fancy school and all that and are now fit to rule govern you. Never you mind the fact that they are consistently inconsistent and in most situations just flat out wrong again and again, they are working on these problems and you can rest assured that In the Great and Glorious Future you will be reaping the fruits of their selfless dedication.

It is in this repeated confusing spiral of self-aggrandizing spin that we properly view statements such as those quoted above. To most on the self-proclaimed right, the world is a scary place with 'terrists' hiding behind every Bush waiting to pounce and kill busloads of children. They have no proof for this concept, they simply read sensationalistic stories from newspapers declaring the latest foiled CIA sponsored plot and then assume that because they have not joined the fiery martyr brigade in the sky that giving up all of their rights, being molested in an airport and starving on the side of the road was worth giving in to the real terrorists.

Please keep in mind that this is the same type of thinking that plagues liberals in support of public institutions like school.It is a subset of the 'only experts can properly do this' thinking. While I somewhat agree, what both sides religiously fail to grasp is that it is not public experts that should be consulted but private experts to provide the necessary expertise to correct the situation.

Why? You ask. Simple, I say. A public servant has a vested interest in breaking a system. The more dysfunctional, the more hours, people and money is ultimately spent on 'fixing' it. The private servant has a vested interest in making the system more efficient because they get to net the profits. It is in this manner we should view with eyes of wide suspicion any statement made by a public official when they say they need more for this is the wide road they use to garner and consolidate power.

Look for the right to again step into the role of Supreme Protectorate and fall over themselves trying to keep America safe. No right or liberty will be sacred the next time a real terrorist attack happens because they will incorrectly surmise that the liberty itself is the aggressor on their safety.

Wednesday, May 16, 2012

Greece Detonates - Exclusion From the EU Imminent?

Let the financial war commence in earnest -
Political leaders in Athens were due to discuss an emergency government Wednesday to deal with a possible run on banks as it emerged Greeks withdrew almost $900 million in a single day, fearing their country could crash out of the euro currency by the end of the week.

An interim government would take the country through to new elections on June 17, triggered by the collapse on Tuesday of talks to form a coalition between winners of the inconclusive May 6 election.

Greeks are withdrawing euros from banks, apparently afraid of the prospect of rapid devaluation if the country leaves the European single currency and returns to the drachma.
and more...
Flash off the rumor mill, unconfirmed -- it appears the Greek banks were just cut off by the ECB.
If this is true then this is the latest "Gun up the nose" game by the Germans and ECB, and is almost-certain, in this political climate, to blow up their face (and quite possibly with shooting involved on the part of the Greeks too.)
This instantly hit the Euro and US stock market, which had been having a reasonably decent day.
If true and confirmed then Greece has been effectively orphaned.  This appears to be a facial attempt to stick a tourniquet on Greece's neck, as with elections due next month cutting off Greek banks now will basically guarantee they all detonate.
Expect the incipient bank runs to resume en-masse within hours if not minutes.
 The Real Effect
Of course, the banksters are lying about exactly what's happening.
 A senior executive at a large Greek bank told Reuters: "There is no bank run, no queues or panic. The situation is better than I expected. The amount of deposit withdrawals the president mentioned referred to three days, not one."
I'm not exactly sure what qualifies the term 'bank run' but you're a fool if you think that the Greeks haven't been pulling money out of the banks like crazy. This is simply more 'calming' rhetoric designed to prevent premature detonation by pacifying the muppets.

Once again, all of this is nothing new for readers of the The Real Effect -

Nov. 2011 -
If Greece votes down the bailout, look for all sorts of screaming by the Euro banksters as they are burned alive on the fires they started. Specifically Italy, Portugal and Spain will blow out as the speculators decimate the banks. (As well they should) More importantly, watch the Eurocrats try some end-run around the will of the people. (You see, Democracy only matters when you're voting FOR the Globalist Hydra, not against. In such cases, the will of the people is far too, unenlightened.)

Look for Europe to burn for a while (3-6 mos?) as the US gets a short lived reprieve. Except this time I believe we're going to start to see casualties.
Jan 2011 -
Western Europe contracts massively, putting extraordinary pressure on the Euro. But the call out of Belgium isn't about revoking the Euro, rather about the preservation of the European Union and the need to 'pull together'. I would expect that we could begin to see propaganda calling for a United Europe in the face of "x" (economic crisis, terror, war). Ultimately in the endgame, foreign creditors feel the massive pinch as they try to protect their investments, but the lack of a favorable response by the people will lead to war with the far east, but not yet.
April 2010
Overall, the problem is, the Greeks don't want "help". But bankers don't exactly take no for an answer, especially when they can take control of your country doing it. Think Iceland.

I believe that this is similar to what happened in Jun - Sept of 2008, there will be tons of rumblings, some casualties, but the real plunge will happen later. The elite seem to want to patch things together to hold it up for just a bit longer.
...and more....For the entirety of the Greek saga, go here.

Update: Yeah, no bank runs here....

Friday, May 11, 2012

Cop Kicks Pregnant Woman In The Stomach

Suspend for a moment, if you will, your belief on who is right -
The incident occurred when officer Jerad Wheeler was called to the pregnant woman’s home to settle a dispute involving the woman’s brother and his partner.

When her brother began arguing with the officer, nine month pregnant Raven Dozier said that Wheeler pulled out a taser and used it on him. When Miss Dozier started crying and asking the officer why he was resorting to such actions, Wheeler kicked her in the stomach, arrested her and charged her with obstruction of a police officer.

Dozier filed an internal affairs complaint with the Dekalb County Police Department, however, officer Wheeler’s superiors put a lid on the investigation and explicitly approved of his conduct, saying he did not contravene department policy.
The Real Effect
 Got that? No? Let's walk through it....
  1. Individual commits action. Is kicked and arrested.
  2. Individual files complaint with police department, basically alleging assault.
  3. Police department exonerates itself citing its own policy.
Got it now? NO ONE is supposed to be above the law and policy or not who has the authority to hold these individuals accountable?


Now, change the policy from kick to shoot and we can plainly see just how the SS got its start.
(In case you still doubt, here are the snitches.)

Thursday, May 10, 2012

A Tale of Two Terrors

Get ur gun ma! Them terrrists done snuck on a plane!
TSA agents at Fort Lauderdale Airport ordered a family to get off a plane they had already boarded, saying that their eighteen-month-old child was on a no fly list as a terror suspect.

The child’s parents said they believe they were flagged up and ordered to leave the JetBlue flight because they and their daughter are of Middle Eastern descent.

The parents, who wish to remain anonymous, are both US citizens, born and raised in New Jersey, which is where they were headed before being ejected.

The family said that after they were “humiliated, embarrassed and picked on” they were marched off the plane, and ordered to stand in the terminal for half an hour by TSA agents.

“We were put on display like a circus act because my wife wears a hijab.” the father said, referring to his wife’s traditional head scarf.

The TSA agents then eventually said that the family could re-board the flight without offering further explanation as to what had occurred. The family declined the offer and left the airport, saying they felt too ashamed to get back on the plane after the incident.
While nothing new, perhaps the fools among us get this now. This is the abject absurdity that this sort of BS nonsense does to your country once you start engaging it. Innocent US citizens flagged, searched, humiliated and detained by the (T)SA brownshirts for simply having their 18 month child's name on a list! God forbid some idiot gets their names and decides to turn their house into a sheet of glass!

Meanwhile the real terrorists continue the war undeterred -
According to my source, there is talk among the highest levels of the uppermost echelon of the Department of Homeland Security, which he describes as effectively under the control of Barack Hussein Obama. During this call, he said that the DHS is actively preparing for massive social unrest inside the United States. He then corrected himself, stating that “a civil war” is the more appropriate term. Certain elements of the government are not only expecting and preparing for it, they are actually facilitating it,” stated my source.

“The DHS takes their marching orders from the Obama administration, from Obama himself, but mostly from his un-appointed czars. And Jarrett, especially Valerie Jarrett. Don’t think for a minute that the administration is doing anything to stabilize events in the U.S. They are revolutionaries, and revolutionaries thrive on chaos,” he added. My source stated that he has not seen things this bad since he began working within DHS. “It’s like they [DHS agency heads] don’t care about what the American people see or feel about what the DHS agencies are doing. They figure that if the average American will put up with being “sexually groped and nuked” just to fly, they’ll accept almost anything. “That’s why their actions are becoming more overt. “It’s in your face and the brass actually chuckle about it” said my source....
The Real Effect
To you fools that think that it's all Obama's work, turn your brain on for a second and recall just who created the Department of Homeland Security. (Hint - It ends with "ush" and begins with "B") For the love of Pete, look around at your country, the brownshirts are marching, the leaders are openly advocating throwing you in camps (And have been for decades) and you want to quibble about just which brownshirt is worse?

Wednesday, May 09, 2012

FBI framing members of Occupy?

Banksters Committing Crimes? Nooooo...

HSBC gets exposed -
Cruz told WND he recorded meetings he conducted with HSBC management and bank security personnel in which he charges various bank managers were engaging in criminal acts.

“I have hours upon hours of voice recordings, ranging from bank tellers, to business representatives, to managers, to executives,” he said. “The whole system is designed to be a culture of fraud to make it look like it’s a legalized system. But it’s not.”

Cruz explained that even when he let bank managers know he was taping the conversation, the managers were not interested in what he was saying.

“HSBC is a criminal organization,” he stressed. “It is a culture of crime.”
The Real Effect
This is part and parcel about why I rail about most government intervention. Most people believe that government is a group of well meaning individuals that are trying to make sure that things are equitable, just and fair. In reality, most government activities is about wealth redistribution from the haves to the have even mores. In a just government, it is of no consequence or concern to a member of the government if I trade with Bob product A for Product B as long as no one's rights are being infringed.

But in today's reality, we recognize that a act may have some inherit danger associated with it, we outlaw it, then we give "exemptions" to the lobbyists so that Big-Mega Company can continue 'providing jobs'.  This results in a monopolistic environment where only the largest companies can possibly have the resources to 'follow the law'. Everyone else is doomed.

For instance, if Bob chooses to buy a house that is too big for him, generally speaking he defaults on his loan, loses his house, his credit gets trashed and he loses gobs of cash. If Super-Ultra Bank buys too many loans, the institution is deemed 'to big to fail' and is bailed out using Bob's money.

Do we really need to discuss why that's a bad idea?

Tuesday, May 08, 2012

Housing Crisis - A Look at the Real Effect of Centralized Planning

The farther the planner is from the plan -
The local homebuilding company Todays Homes laid off all of its local employees Friday, leaving the fate of three oversized townhomes the company had pledged to move up in the air, along with dozens of other properties.
Scott Vaughan, who had been the sales manager for Todays Homes, said he didn’t know what would happen to the company’s properties and that it would be up to Todays Homes’ parent company, Unity Builders Group of Calgary, Canada, to work with the city and homeowners on unfinished projects.
The Real Effect
This is a very easy concept to understand overall. Government has allowed 'easy money' to infiltrate the system through artificially low interest rates which inflates and subsequently devalues the money supply via unbacked credit emission. This in turn causes the amount of debt to outsupply the amount of production in the system and cause the collapse of loans. Theft by counterfeit if you will.

The answer to this problem is to allow individuals and companies to default on their debt and suffer the consequences. Yet we continue to have the same insanity propagate itself on a national level.

Please explain how destroying these homes to 'preserve value' adds anything to the system? (A course of action not being discussed in this article but the only trick that central planners seem to know) I'm sure people would love to hear how an act of destruction makes us all more wealthy?

Imagine for a moment that this was the solution at say, Wal-Mart. Rather than get clearance, the items are subsequently rounded up and incinerated by a paid group of central agents.

Scenario A - Clearance
  • 10 widgets are ordered
  • 5 widgets are sold for $1
  • 5 go on clearance and are sold  for $0.5
  • Feedback is given to the company, next time the company orders 5 widgets and Bob the overzealous buyer is fired and Joe the conservative buyer is hired.
Total: Company $7.50; Customer - 10 widgets; Bob - Unemployed; Joe - Employed.

Scenario B - Central Planning
  • 10 widgets are ordered
  • 5 widgets are sold for $1
  • Central planning pays Fred $2 (which comes out of the companies profits) to seize and destroy the 5 widgets which 'props up pricing'. No cheap merchandise here folks. Not on Fred's watch!
  • No feedback which continues to order 10 widgets from here to eternity to support 'jobs'.  
Total: Company $3 ($5 - Fred's salary); Customer - 5 widgets; Bob - Employed; Joe - Unemployed. Fred - Wreaking havoc.

Yeah....this concept doesn't work. The Soviets proved that decades ago. You'd think we would have learned the same lesson.

Look for continued calls to 'support' things while simultaneously the public continues to get wise to the Broken Window Fallacy economics that are being played out in Washington.

Monday, May 07, 2012

Ron Paul, Winning Delegates and the Election

Could an upset be brewing here? -
In state after state, Ron Paul is gobbling up delegates.  The following are quotes from a recent Huffington Post article about what the Ron Paul campaign has been able to achieve in the past few weeks....
-"Sure enough, Paul has already won 20 out of the 24 delegates allocated in Minnesota, by winning a majority of the congressional district contests."
-"In Louisiana, Paulites "dominated" the congressional district caucuses this past Saturday, according to the New Orleans Times-Picayune. Paul's supporters carried four of the state's congressional districts, and are guaranteed at least 17 of 46 delegates in the Bayou State, with the potential to pick up more at the state convention on June 2."
-"The other state that Benton likely has his eye on is Colorado, where the Denver Post reported in mid-April that Paul supporters and Santorum backers combined forces to win a "stunning upset" at the state convention, guaranteeing that about half of the state's 33 delegates will be for Paul in August."
And look what just happened in Maine according to USA Today....
In votes leading to the close of the two-day Maine convention, Paul supporters were elected to 21 of the 24 delegate spots from Maine to the GOP national convention in Tampa, Fla.
So Ron Paul is definitely accumulating a huge pile of his own delegates, but even many so-called "pledged delegates" for Romney could end up playing a huge role for Ron Paul.

The Real Effect
This is going to be rich. Perhaps some of you remember the 'Electoral College' debate, I forget if it was 200 or 2004, in which the Democrats were screaming about the 'will of the people' being subverted and how the EC was archaic and blah, blah, blah... Well at the time, the GOP was proudly proclaiming the 'rule of Law' (As they rightly should have been) and that the election process could not be changed in the middle of the race. (A concept I fully support.)

Well, well, appears that the GOP is going to have the opportunity to also engage in this type of nonsense. If Romney doesn't secure the necessary delegates to secure the nomination will the Republicans start screaming about the 'will of the people'? My belief is a very firm yes.

They have already proved that they are not above 'losing ballots', changing rules, stealing, and other shenanigans to get what they want. They have been declaring Mitt the nominee since he 'won' Iowa, Rick Santorum 'won' Iowa, Ron Paul actually won Iowa, why would anyone think anything different?